Mortgage Rates Fall to Six-Week Low as Housing Market Languishes

U.S. mortgage rates dropped to the lowest level in six weeks, reducing borrowing costs for homebuyers as the housing market languishes.

The average 30-year rate fell to 4.78 percent in the week ended today from 4.80 percent, Freddie Mac said in a statement. The 15-year rate averaged 3.97 percent, down from 4.02 percent a week ago, the McLean, Virginia-based mortgage-finance company said. Both rates were the lowest since the week ended March 17.

Mortgage rates of less than 5 percent have done little to increase demand for home purchases as unemployment remains close to 9 percent. The S&P/Case-Shiller index of property values in 20 cities fell 3.3 percent in February, the largest year-over-year decline since November 2009, a report this week showed.

The Mortgage Bankers Association’s index of loan applications declined 5.6 percent in the week ended April 22, the Washington-based group said yesterday. Its gauge of purchases plunged 14 percent, the most in almost a year. The index measuring refinancing dropped 0.6 percent.

The average rate for a 30-year fixed loan is below where it was last year at this time, when it was 5.06 percent, according to Freddie Mac. It hit a record low of 4.17 percent in November.

U.S. mortgage rates dropped to the lowest level in six weeks, reducing borrowing costs for homebuyers as the housing market languishes.
The average 30-year rate fell to 4.78 percent in the week ended today from 4.80 percent, Freddie Mac said in a statement. The 15-year...